Marketing: Helping Buyers Buy PDF

*Chapter Thirteen * Marketing:...

*Chapter Thirteen * Marketing: Helping Buyers Buy McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.  * Chapter Thirteen Two different Markets * A market consists of people with unsatisfied wants & needs who have the resources and the willingness to buy. 2 major markets in business are: Consumer Market -- All the individuals or households that want goods and services for personal use and have the resources to buy them. Business-to-Business (B2B) -- Individuals and organizations that buy goods and services to use in production or to sell, rent or supply to others. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.  *The Consumer MARKETING to CONSUMERS Market LG5 * The size and diversity of the consumer market forces marketers to decide which groups they want to serve. Market Segmentation -- Divides the total market into groups with similar characteristics. Target Marketing -- Selecting which segments an organization can serve profitably. 13-3  Market Segmentation Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Market Segmentation Segmenting Consumer Markets  Market Segmentation Segmenting Consumer Markets Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits  * SEGMENTING the CONSUMER MARKET (continued) LG5 * Benefit Segmentati on -- Dividing the market according to product benefits the customer prefers. 13-7  *Segmenting SEGMENTING the CONSUMER the Consumer MARKET Market Benefit Segmentation LG5 * 13-8  *Segmenting SEGMENTING the CONSUMER the Consumer Market MARKET (continued) LG5 * Volume (Usage) Segmentation -- Dividing the market by the volume of product use. User status Usage rate Loyalty status 13-9  MINI ACTIVITY 1 Identify the segmentation variable being used for the products: 10  *Reaching MARKETING to Smaller Market Segments SMALL SEGMENTS LG5 * Niche Marketing -- Identifies small but profitable market segments and designs or finds products for them. 13-11  *Reaching MARKETING to Smaller Market Segments SMALL SEGMENTS LG5 * One-to-One Marketing-- Developing a unique mix of goods and services for each individual consumer. 13-12  *Reaching MARKETING to Smaller Market Segments SMALL SEGMENTS LG5 * One-to-One Marketing- 13-13  *Reaching MARKETING to Smaller Market Segments SMALL SEGMENTS LG5 * One-to-One Marketing-- Source: https://marketbusinessnews.com/financial-glossary/one-to-one-marketing-definition-meaning/ 13-14  *Moving Toward MASS MARKETING vs. Relationship Marketing RELATIONSHIP MARKETING LG5 * Mass Marketing -- Developing products and promotions to please large groups of people. 13-15  *Moving Toward MASS MARKETING vs. Relationship Marketing RELATIONSHIP MARKETING LG5 * Relationship Marketing-- Rejects the idea of mass production and focuses toward custom-made goods and services for customers. 13-16  *Moving Toward Relationship RELATIONSHIP MARKETING Marketing LG5 * SOURCE: https://www.dhakatribune.com/bangladesh/2018/03/12/nikhoj-shobder-khoje-brings-back-5500-forgotten-bangla-words 13-17  *Moving Toward KEYS to SUCCESSFUL RELATIONSHIP Relationship Marketing MARKETING LG5 * Effective relationship marketing is built on: Open communication Consistently reliable service Staying in contact with customers Trust, honesty, and ethical behavior Showing that you truly care 13-18  * The Consumer STEPS in the CONSUMER Decision-Making Process DECISION-MAKING PROCESS LG5 * 1. Problem recognition 2. Search for information 3. Evaluating alternatives 4. Purchase decision 5. Postpurchase evaluation 13-19  Need Recognition The buying process starts with need recognition ─ the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person’s normal needs ─ for example, hunger or thirst ─ rises to a level high enough to become a drive. A need can also be triggered by external stimuli.  Information Search Information search is the stage of the buyer decision process in which the consumer is motivated to search for more information. Traditionally, consumers have received the most information about a product from commercial sources that controlled by the marketer. The most effective sources tend to be personal. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer.  Evaluation of Alternatives The alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Marketers should study buyers to find out how they actually evaluate brand alternatives.  Purchase Decision The purchase decision is the buyer’s decision about which brand to purchase. But two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. The second factor is unexpected situational factors.  Postpurchase Behavior The postpurchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. Almost all major purchases, however, result in cognitive dissonance, or discomfort caused by postpurchase conflict.  MINI ACTIVITY 2 Apply the CONSUMER DECISION MAKING PROCESS on the mentioned brands and explain. 25  * The Consumer CONSUMER DECISION MAKING PROCESS Decision-Making Process AND OUTSIDE INFLUENCES LG5 * 13-26  *The KEY FACTORS in CONSUMER Business-to-B usiness Market DECISION-MAKING LG6 * Learning Reference Groups Culture Subcultures 13-27  *The BUSINESS-to-BUSINESS Business-to-B usiness Market MARKET (B2B) LG6 * B2B marketers include: - Manufacturers - Wholesalers and retailers - Hospitals, schools and charities - Government Products are often sold and resold several times before reaching final consumers. 13-28  *The B2B MARKET DIFFERENCES Business-to-B usiness Market LG6 * There are relatively few customers. Customers tend to be large buyers. Markets are geographically concentrated. Buyers are more rational than emotional. Sales are direct. Promotions focus heavily on personal selling. 13-29 Thanks! Any questions? 30